Endesa (ELE) Q2 2026 earnings summary

Executive summary

• EBITDA rose 20% year-on-year to €3.2 billion, with net income up 41% to €1.5 billion, driven by strong growth in regulated activities and operational efficiencies.

• Regulated businesses now contribute about 50% of total EBITDA, enhancing earnings quality and predictability.

• Over 60% of the full-year EPS target was achieved in H1, prompting an upgrade in 2026 EPS guidance to €2.4/share.

• Capex increased 38% year-on-year, mainly focused on Networks to support future growth.

• Net profit for the first half of 2026 reached €741 million, up from €323 million in the same period of 2025, driven by higher dividend income from subsidiaries and lower operating expenses.

Financial highlights

• Revenue grew 1% year-on-year to €10,995 million, with gross margin up 12% to €4,253 million.

• EBITDA reached €3,240 million (+20%), EBIT €2,094 million (+31%), and net attributable income €1,470 million (+41%).

• Net financial debt increased slightly to €10.3 billion; net financial debt/EBITDA ratio stable at 1.6x.

• Fixed costs decreased by 8% year-on-year, offsetting inflation and business growth costs.

• Earnings per share for the first half of 2026: €0.71 (basic and diluted), up from €0.31 in the first half of 2025.

Outlook and guidance

• Upgraded 2026 net ordinary income guidance to exceed €2.4 billion, above the original range.

• Free power margin expected to remain in line with H1 levels; gas margin to moderate in H2 due to seasonality.

• Limited upside from higher wholesale power prices due to full hedging.

• Strategy remains unchanged, with a new investment plan to be communicated in early 2027.

• Strong earnings performance expected to translate into higher shareholder returns.